Podcast
Questions and Answers
What is the effective return earned by a bond called?
What is the effective return earned by a bond called?
- Interest rate
- Face value
- Bond yield (correct)
- Coupon payment
If a bond has a face value of $100 and pays an annual coupon of $10, what is its yield?
If a bond has a face value of $100 and pays an annual coupon of $10, what is its yield?
- 1%
- 10% (correct)
- 100%
- $10
What is the term used for the price at which a bond is actually purchased in the market?
What is the term used for the price at which a bond is actually purchased in the market?
- Face value
- Bond yield
- Actual purchase price (correct)
- Coupon payment
What happens to the demand for a bond if the interest rates in the broader economy are lower than the bond's coupon payment?
What happens to the demand for a bond if the interest rates in the broader economy are lower than the bond's coupon payment?
If the actual purchase price of a bond is higher than its face value, what can be inferred about the bond's coupon payment compared to the prevailing interest rates?
If the actual purchase price of a bond is higher than its face value, what can be inferred about the bond's coupon payment compared to the prevailing interest rates?
Which of the following is NOT a feature of debentures?
Which of the following is NOT a feature of debentures?
What is the main purpose of bonds issued by the government or government agencies?
What is the main purpose of bonds issued by the government or government agencies?
Which of the following statements about convertible debentures is correct?
Which of the following statements about convertible debentures is correct?
What is the difference between debentures and bonds in India?
What is the difference between debentures and bonds in India?
Which of the following is NOT a common type of debenture mentioned in the text?
Which of the following is NOT a common type of debenture mentioned in the text?
